BY JP LOPEZ

ZTE star witness Rodolfo Noel Lozada Jr. yesterday confirmed that former Elections chair Benjamin Abalos Sr. bribed former Planning Secretary Romulo Neri with P200 million in exchange for approval of the $329 million national broadband network deal with China’s ZTE Corp.

During his Senate appearance that lasted for almost eight hours, Lozada told Senate President pro-tempore Jinggoy Estrada that Abalos was apparently pleased that the negotiations with ZTE people were proceeding smoothly that he told him that the P200 million would be released in advance.

The offer was supposedly made at the Wack Wack Golf and Country Club in Mandaluyong city last September.

"I was assuring kasi mga taga-ZTE that the project is moving forward. Natuwa po ata sa akin si Chairman Abalos. Nung papunta na ako sa locker room, inakbayan niya ako ng ganito tapos sabi niya sa akin, ‘Wag kang mag-alala Jun, basta ma-approbahan na ito ng NEDA, yung 200 million ninyo, ia-advance ko na. Hindi ako katulad ng ibang kausap ninyo na maghihintay pa ma-release ung loan bago kayo mabigyan’," Lozada said, quoting Abalos.

Neri had told the Senate last September that Abalos offered him P200 million.

Lozada said he never presumed that the offer was for him but for Neri.

"Baka po makiki-balato na lang po ako kay Chairman Neri kung sakali man," he said in jest.

He said ZTE officials already paid Abalos in advance for brokering approval of the project.

Earlier in the hearing, Lozada, the broadband project’s technical consultant, said Abalos wanted a $130 million commission.

He recalled Abalos thumbed down his recommendation for a build-operate-transfer (B-O-T) scheme and instead insisted on a loan package.

Lozada said Abalos called First Gentleman Mike Arroyo after he informed Abalos that it was not possible to get a separate loan agreement from the Chinese government for the national broadband network project since China had already facilitated a loan for the Cyber-Education project.

A day after the conversation, Lozada said he received a letter from the Chinese ambassador Li Jin Jun that there was an available loan facility for the NBN project independent of the CyberEd project.

Sen. Panfilo Lacson said Lozada has established the involvement of President Arroyo in the anomalous deal when she flew to China last April to witness the signing of the NBN-ZTE deal.

"Paano nangyari yun. The project would not be approved if not under the BOT scheme. Would the President overturn herself? Malinaw na na-establish ni Lozada ang involvement ni GMA dito," Lacson said after the hearing.

Lozada’s testimony corroborated the statements of businessman Jose "Joey" de Venecia III linking Abalos and the presidential spouse to the ZTE deal.

Lozada said he met the First Gentleman several times in Shangri-La Makati where the NBN deal was discussed.

He said he was tapped by Neri, then director general of National and Economic Development Authority, to study De Venecia’s build-operate-transfer proposal and Abalos’ loan agreement proposal for the NBN project.

He said Neri’s specific instruction was to use the BOT proposal for the NBN project.

He said he proposed that De Venecia’s BOT proposal be funded by Abalos’ loan agreement proposal for the NBN project.

Lozada said he was surprised, however, when Abalos agreed with the proposal on the condition that he would protect his (Abalos’) $130 million cut in the project.

I told him: "Chair, bubukol po yan. Napakalaki po niyan. $65 million pupwede pa."

Lozada, who broke down in tears several times, said it was during this time that Neri told him to "moderate the greed" of the proponents of the NBN deal.

Lozada recalled that when Abalos insisted on a loan package, he refused, prompting Abalos to repeatedly threaten him.

Lozada said the last straw was on January 18 when Abalos called him again as he was his way to Dumaguete City, as part of his work as president of the Philippine Forest Corp, that he had contacts in the military and police.

Lozada alleged Abalos mouthed profanities at him.

He said it was at this point that he decided to quit his consultancy because "this was not something worth risking my life for."

Sen. Mar Roxas applauded him for his willingness to come out.

"We’re glad you’re safe. All across the nation we were worried about your well-being. This is not an inquisition. Just relax. We sympathize with your predicament over the last weeks, months," he said.

LAST WILL

Lozada revealed he executed a personal affidavit or some kind of "last will and testament" about the telecommunications project and made arrangements for its release should anything happen to him.

Lozada refused to elaborate when pressed by Sen. Loren Legarda on the contents of the affidavit. "I have said enough and I want to retain something on my person," he said.

Sen. Miriam Defensor-Santiago tried to discredit Lozada by asking him about his alleged illegal actions as president of Philippine Forest Corp.

Lozada admitted to signing a lease agreement – both as PhilForest official and Transforma Quinta Inc. official – for 50 hectares of land in Antipolo.

He also admitted to possibly giving away contracts – ranging from P81,700 to P19 million – without public bidding.

"Mea culpa. I have done things that have made me lose respect for myself. I don’t want to lose my soul," he said.

"His (Lozada) story is very gripping, it has all the ingredients of a blockbuster: there is a lot of money, there is a lot of corruption involved. But the problem is he has no evidence to back up all his assertions," Santiago said at the end of the first part of Lozada’s testimony.

"It makes me doubt very much whether I should take his testimony at face value because he is accusing other people of violating the Anti-Graft and Corrupt Practices Act when he himself admittedly is guilty of such violation," she said.

But in the view of Santiago’s majority colleagues, Lozada is a credible witness.

Senate President Manuel Villar said it would be "very hard" to doubt Lozada’s testimony. "Maliwanag, detalyado, mahirap pagdudahan ang kanyang testimonya," Villar said.

He also described Malacañang as already "running scared" when it called for a press conference Thursday while Lozada was giving his statements before the senators.

CONSCIENCE DECISION

When Sen. Rodolfo Biazon asked why he decided to appear in the Senate inquiry, Lozada said it was a conscience decision and that he was not forced by anybody to divulge what he knew about the project. "I never imagined myself to become a hero, Mr. Senator."

"Mayroon pa nga akong mga permissible zones di ba? Hindi ako pwedeng maging hero," Lozada said.

Lozada also said that one of the factors that led him to reveal what he knew was that he feared for his life.

He explained that his father was a poor immigrant from China who told him to love the Philippines and "pay this country back for all the good that it has done for him and his family."

In between sobs, Lozada believed that working in government and putting up businesses is his way of helping the country.

"So if you’re asking me I guess I am just giving honor to my father and paying this country back," he said.

Lozada said he had received death threats before. "For someone like me who has no political connection, no social pedigree, nothing, those things are very, very serious," he said.

He said he expects that charges will be filed against him for his revelation on the scrapped multi-million dollar project.

"Yes. I am expecting they will throw everything back at me including the proverbial kitchen sink. They would try everything. Sabi nga nila sisikip ang mundo ko. Ini-expect ko na po iyun. It is sad but it is the reality I have to face," said Lozada.

DEAR FRIEND

Under questioning, Lozada described Neri as a "dear friend" but admitted that the chairman had "chosen a side."

"I know (Neri) cares for me but in this particular instance he has chosen a side," he said.

He refused to describe the "side" Neri has chosen.

On insinuations by Sen. Jamby Madrigal that he has "intimate relations" with Neri, Lozada said "my relation with Secretary Neri was purely professional."

Lozada also said he was with the First Gentleman in China to check the X-ray machines that the government would procure for Philippine ports.

Senators had stumbled on a $150 million deal for X-ray machines for container vans purchased by the Bureau of Customs under a $1.109 billion government-to-government loan agreement with China.

Lozada also revealed that the SouthRail project rehabilitating the railway system from Manila to Bicol is overpriced by $70 million.

Lozada said the proponents of the SouthRail project told him that Palace officials had allegedly benefited from the deal.

He said the government’s procurement system is defective because it is not tailored to fit the needs of the state but the interests of suppliers’ "patrons."

Lozada said government procurement contracts often go to suppliers who are close to officials handling the projects.

"The procurement system doesn’t really work. The process of procurement is tailoring the process to the supplier. We don’t look for the best supplier. It should be needs-driven, but now it is supply-driven. Also, there’s no check and balance," he said.

The Senate has summoned PNP chief Avelino Razon, PSPO officials and NAIA security chief Angel Atutubo when hearings resume Monday.